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16 December 2017

3 Tips for Surviving a Cash Flow Crunch

I have never met a business person who hasn't at one time or another had a cash flow crunch. There may be someone out there, but I've never met one. I know I have had one or two as I ease myself into this thing called business. You're not alone. Here are 3 lessons that I have learned where the rubber hit the road.

1. Don't beat yourself up over it. You got here because of decisions you have made. Accept it, learn from it and move on. No sense getting angry at yourself. It's counter productive.

2. You won't get out of one hole by digging another one. As much as you may want to borrow from Peter to pay Paul, avoid the impulse. You're already overextended - think of ways to generate more revenue instead of looking for quick fixes. You're in a place of great learning - hard knocks are like that.

3. Get humble real quick. The thing about good business people is that they're not afraid to humble themselves. Ask for an extension on payment if you need to but only if you won't inconvenience someone else. You need to get through this and keep your business going. Get humble real quick.

My two cents - something needs to change if this becomes a chronic problem in your business. Think long and hard about that.